Choosing to create a captive insurance structure can help your business gain more control over your insurance operations and costs, while helping you obtain coverage that could otherwise be difficult or impossible to find through traditional insurance channels.
Companies that are new to using captive insurance companies often have a lot of questions about working with their captive insurance managers. The relationship between the owner of the captive insurance company and the captive’s manager can be critically important to the ongoing success of the captive, so knowing what to expect and how to communicate are key.
This blog post includes information designed for any business that is considering establishing a captive insurance company, or that recently established one but still has questions about how to work with the captive insurance manager.
In most cases, businesses establishing captive insurance companies are not well-versed in insurance, but still want to be able to take advantage of the benefits captives can offer. Running insurance companies includes doing more than receiving and paying claims; insurance companies must calculate reserves, make required filings with the state insurance department, underwrite risks, set premiums, handle claims, and more. Fortunately, those types of tasks and services are exactly what your captive insurance manager specializes in.
Your captive manager will also keep the books and handle regulatory responsibilities. Your licensed captive insurance manager serves at the direction of your captive’s board and is accountable to the state insurance department for the jurisdiction where your captive is registered to do business. Because of this, your captive manager must manage the insurance company in compliance with insurance laws.
Open Communication is Key
Keeping the lines of communication between captive owners and captive managers is important, and should be a goal of any company establishing a captive insurance company. Both parties have a responsibility to each other, and to the insurance regulators, so it is critical that both parties operate from a shared understanding of how the relationship will be structured.
Generally speaking, look for a captive manager who works with captive owners to help them meet their responsibilities, and who provides clear guidance up front and during the course of the captive’s lifecycle about who is responsible for what.
Find out Why Businesses Love Working with Venture Captive Management
At Venture Captive Management, we provide turnkey captive insurance management structures to help businesses get the coverage they need. We work closely with our clients to help them establish compliant and functional captive insurance companies, designing and crafting insurance policies and making required regulatory filings.
We also play an ongoing role managing the captive insurance company by handling accounting and financial responsibilities, and work with professional business partners to ensure required audits and tax obligations are adhered to. We also work closely with captive owners to help them with investments for their insurance strategy.
To learn more about how we work with captive insurance companies, contact us today at (770) 246-8535.